Financial Services Sector: Value Investing Analysis
About the Financial Services Sector
Companies that provide financial services include banks, savings and loans, asset management companies, credit services, investment brokerage firms, and insurance companies. Companies in this sector include Allianz, JPMorgan Chase, and Legg Mason.
The Financial Services sector groups related businesses that share similar economic characteristics, market dynamics, and competitive forces. By analyzing stocks within this sector, you can compare companies on a more level playing field—making it easier to identify which businesses offer the best value for your investment dollars.
Understanding sector performance helps you evaluate whether individual stocks are cheap or expensive relative to their peers. A P/E ratio that looks high in one sector might be a bargain in another. This context is essential for value investors seeking to calculate realistic expected returns.
Financial Services Stocks: Value Analysis
Below are the stocks we track in the Financial Services sector, with key value investing metrics. If you have special knowledge about this sector, you have an advantage—use these metrics to find stocks that may be trading below their intrinsic value.
| Company | Current Price | Current Price Discount 10 years |
|---|---|---|
| Flushing Financial Corporation (FFIC) |
$15.47 | none |
(BPO) |
$0.00 | none |
| Origen Financial (ORGN) |
$0.95 | none |
| Gaming and Leisure Properties (GLPI) |
$37.78 | none |
| CVB Financial Corp. (CVBF) |
$21.53 | none |
| Sun Life Financial (SLF) |
$75.82 | none |
| State Street Corporation (STT ) |
$174.19 | none |
| LendingClub Corporation (LC) |
$19.21 | none |
| BlackRock (BLK) |
$1069.63 | none |
| Webster Financial Corporation (WBS) |
$77.57 | none |
| United Tennessee Bankshares (UNTN) |
$29.03 | none |
| Ares Management Corporation (ARES) |
$115.75 | none |
| MicroStrategy Incorporated (MSTR) |
$153.37 | none |
| Newtek Business Services Corp. (NEWT) |
$10.94 | none |
| Voya Financial (VOYA) |
$96.64 | none |
| WisdomTree Continuous Commodity Index Fund (GCC) |
$26.60 | none |
| Orchid Island Capital (ORC) |
$5.02 | none |
| Artisan Partners Asset Management (APAM) |
$33.65 | none |
| Westwood Holdings Group (WHG) |
$19.20 | 52.1% |
| Wheeler Real Estate Investment Trust (WHLR) |
$0.69 | none |
| UMH Properties (UMH) |
$15.03 | none |
| CareTrust REIT (CTRE) |
$37.54 | none |
| CorVel Corporation (CRVL) |
$70.67 | none |
| U.S. Bancorp (USB) |
$60.06 | none |
| Cboe Global Markets (CBOE) |
$266.67 | none |
| OceanFirst Financial Corp. (OCFC) |
$17.87 | none |
| Consumer Portfolio Services (CPSS) |
$9.34 | 72.4% |
| Raymond James Financial (RJF) |
$164.75 | none |
| Public Storage (PSA) |
$300.76 | none |
| Camden National Corporation (CAC) |
$57.48 | none |
| Sun Communities (SUI) |
$113.75 | none |
| Shore Bancshares (SHBI) |
$23.23 | none |
| The9 Limited (NCTY) |
$3.96 | none |
| High Sierra Technologies (HSTI) |
$1.40 | none |
| Hilltop Holdings (HTH) |
$38.65 | none |
| Vornado Realty Trust (VNO) |
$34.90 | none |
| Ventas (VTR) |
$86.69 | none |
| VirnetX Holding Corp (VHC) |
$10.19 | none |
| Southside Bancshares (SBSI) |
$31.54 | none |
| Houlihan Lokey (HLI) |
$130.55 | none |
| WVS Financial Corp. (WVFC) |
$20.35 | none |
| Chubb Limited (CB) |
$341.90 | none |
| Extra Space Storage (EXR) |
$139.03 | none |
| Easterly Government Properties (DEA) |
$23.36 | none |
| AvalonBay Communities (AVB) |
$184.06 | none |
| NexPoint Residential Trust (NXRT) |
$21.04 | none |
| 360 DigiTech (QFIN) |
$6.46 | none |
| United Bancshares (UBOH) |
$39.75 | none |
| Boston Properties (BXP) |
$63.93 | 4.7% |
| Banc of California (BANC) |
$18.50 | none |
| Loews Corporation (L) |
$107.77 | none |
| LPL Financial Holdings (LPLA) |
$328.09 | none |
| Morningstar (MORN) |
$183.55 | none |
| Community Trust Bancorp (CTBI) |
$75.93 | none |
| Four Corners Property Trust (FCPT) |
$22.62 | none |
| Chemung Financial Corporation (CHMG) |
$82.97 | none |
| SB Financial Group (SBFG) |
$29.48 | none |
| DDR Corp. (DDR) |
$0.00 | none |
| Wintrust Financial Corporation (WTFC) |
$147.52 | none |
| Redwood Trust (RWT) |
$3.94 | none |
| Network-1 Technologies (NTIP) |
$1.56 | none |
| Popular (BPOP) |
$162.03 | none |
| Markel Corporation (MKL) |
$1776.33 | none |
| Stock Yards Bancorp (SYBT) |
$79.37 | none |
| NMI Holdings (NMIH) |
$42.90 | none |
| Industrial Logistics Properties Trust (ILPT) |
$7.71 | none |
| Investors Title Company (ITIC) |
$289.00 | none |
| White Mountains Insurance Group, Ltd. (WTM) |
$2061.30 | none |
| EPR Properties (EPR) |
$56.72 | none |
| Annaly Capital Management (NLY) |
$21.31 | none |
| Heritage Insurance Holdings (HRTG) |
$34.15 | none |
| Carver Bancorp (CARV) |
$1.60 | 69.0% |
| eHealth (EHTH) |
$0.89 | none |
| Brixmor Property Group (BRX) |
$28.03 | none |
| Horizon Bancorp (HBNC) |
$19.48 | none |
| Equinix, Inc. (REIT) (EQIX) |
$1057.26 | none |
| Sabra Health Care REIT (SBRA) |
$19.87 | none |
| Republic Bancorp (RBCAA) |
$93.84 | none |
| American International Group (AIG) |
$75.33 | 1.0% |
| National Australia Bank Limited (NABZY) |
$13.87 | none |
| Park National Corporation (PRK) |
$183.37 | none |
| CIT Group (CIT) |
$0.00 | none |
| Bar Harbor Bankshares (BHB) |
$40.28 | none |
| CCSB Financial Corp. (CCFC) |
$0.00 | none |
| UDR (UDR) |
$33.89 | none |
| American Financial Group (AFG) |
$141.24 | none |
| Ares Commercial Real Estate Corporation (ACRE) |
$4.38 | 50.3% |
| Waterstone Financial (WSBF) |
$20.46 | none |
| Associated Banc-Corp (ASB) |
$29.66 | none |
| MFA Financial (MFA) |
$8.45 | none |
| Apollo Commercial Real Estate Finance (ARI) |
$6.43 | 54.1% |
| Whitestone REIT (WSR) |
$18.99 | none |
| Sierra Bancorp (BSRR) |
$40.19 | none |
| Affiliated Managers Group (AMG) |
$355.80 | none |
| FS Bancorp (FSBW) |
$43.87 | none |
| Ameriprise Financial (AMP) |
$544.33 | none |
| United States Natural Gas Fund, LP (UNG) |
$10.41 | none |
| National Bankshares (NKSH) |
$42.59 | none |
| Arbor Realty Trust (ABR) |
$4.34 | 18.4% |
| American Tower Corporation (REIT) (AMT) |
$174.60 | none |
| United Bancorp (UBCP) |
$16.00 | none |
| Live Oak Bancshares (LOB) |
$38.02 | none |
| Kingstone Companies (KINS) |
$19.18 | none |
| Valley National Bancorp (VLY) |
$13.59 | none |
| Hannon Armstrong Sustainable Infrastructure Capital (HASI) |
$36.73 | none |
| Kearny Financial Corp. (KRNY) |
$9.56 | none |
| Home Federal Bancorp, Inc. of Louisiana (HFBL) |
$26.51 | none |
| Northern Trust Corporation (NTRS) |
$177.89 | none |
| German American Bancorp (GABC) |
$49.18 | none |
| Ames National Corporation (ATLO) |
$31.91 | none |
| Seacoast Banking Corporation of Florida (SBCF) |
$33.70 | none |
| Crown Castle International Corp. (REIT) (CCI) |
$73.22 | none |
| CCUR Holdings (CCUR) |
$2310.00 | none |
| Fifth Third Bancorp (FITBI) |
$25.69 | none |
| ACNB Corporation (ACNB) |
$63.85 | none |
| Pacific Financial Corporation (PFLC) |
$18.38 | none |
| Union Bankshares (UNB) |
$23.96 | none |
| Provident Financial Holdings (PROV) |
$18.61 | none |
| Selective Insurance Group (SIGI) |
$86.70 | none |
| Harleysville Group (HGIC) |
$0.00 | none |
| Intercontinental Exchange (ICE) |
$155.37 | none |
| Commerce Bancshares (CBSH) |
$56.55 | none |
| Bankwell Financial Group (BWFG) |
$65.94 | none |
| Tiptree (TIPT) |
$17.47 | none |
| Truist Financial Corporation (TFC) |
$48.56 | none |
| AGNC Investment Corp. (AGNC) |
$9.87 | 53.0% |
| First Financial Bankshares (FFIN) |
$32.81 | none |
| First Robinson Financial Corporation (FRFC) |
$72.72 | none |
| BankFinancial Corporation (BFIN) |
$12.00 | none |
| Synchrony Financial (SYF) |
$75.04 | none |
| Aon Plc (AON) |
$295.64 | none |
| Gladstone Land Corporation (LAND) |
$9.43 | none |
| Community West Bancshares (CWBC) |
$26.05 | none |
| Omega Healthcare Investors (OHI ) |
$46.83 | none |
| Principal Financial Group (PFG) |
$117.67 | none |
| Lake Shore Bancorp (LSBK) |
$17.96 | none |
| State Street Corporation (STT) |
$182.87 | none |
| Encore Capital Group (ECPG) |
$99.54 | none |
| New York REIT (NYRT) |
$0.00 | none |
| The St. Joe Company (JOE) |
$64.56 | none |
| Nasdaq (NDAQ) |
$93.54 | none |
| Outfront Media (OUT) |
$27.98 | none |
| Invesco Ltd. (IVZ) |
$30.53 | 13.9% |
| LCNB Corp. (LCNB) |
$18.79 | none |
(SCBT) |
$0.00 | none |
| First Interstate BancSystem (FIBK) |
$37.35 | none |
| Ryman Hospitality Properties (RHP) |
$121.94 | none |
| Realty Income Corporation (O) |
$56.66 | none |
| First Financial Corporation (THFF) |
$76.55 | none |
| Unity Bancorp (UNTY) |
$58.19 | none |
| Brandywine Realty Trust (BDN) |
$2.90 | 76.0% |
| Equity Bancshares (EQBK) |
$49.03 | none |
| CB Financial Services (CBFV) |
$37.28 | none |
| KKR & Co. (KKR) |
$98.81 | none |
| Independence Realty Trust (IRT) |
$14.76 | none |
| The Allstate Corporation (ALL) |
$229.50 | none |
| Independent Bank Corporation (IBCP) |
$36.23 | none |
| ProAssurance Corporation (PRA) |
$25.00 | 4.4% |
| Euronet Worldwide (EEFT) |
$66.03 | none |
| PennyMac Mortgage Investment Trust (PMT) |
$8.80 | none |
| Apartment Investment and Management Company (AIV) |
$2.18 | 92.1% |
| Meta Financial Group (CASH) |
$76.17 | none |
| Blackstone Mortgage Trust (BXMT) |
$13.27 | none |
| Equity LifeStyle Properties (ELS) |
$60.40 | none |
| United Fire Group (UFCS) |
$54.39 | none |
| Central Pacific Financial Corp. (CPF) |
$37.64 | none |
| Oxbridge Re Holdings Limited (OXBR) |
$1.48 | none |
| National Western Life Group (NWLI) |
$0.00 | 64.4% |
| Welltower (WELL) |
$228.87 | none |
| Retail Opportunity Investments Corp. (ROIC) |
$0.00 | none |
| Rayonier (RYN) |
$20.14 | none |
(ALTE) |
$0.00 | none |
| City Holding Company (CHCO) |
$143.21 | none |
| Ashford Hospitality Trust (AHT) |
$2.74 | none |
| FB Financial Corporation (FBK) |
$53.36 | none |
| National Bank Holdings Corporation (NBHC) |
$40.97 | none |
| Camden Property Trust (CPT) |
$99.12 | none |
| Eagle Financial Services (EFSI) |
$45.93 | none |
| RLI Corp. (RLI) |
$59.39 | none |
| BOK Financial Corporation (BOKF) |
$132.75 | none |
| Eagle Bancorp (EGBN) |
$28.32 | 23.2% |
| DigitalBridge Group (DBRG) |
$15.88 | none |
| American Equity Investment Life Holding Company (AEL) |
$0.00 | 19.1% |
| Great Ajax Corp. (AJX) |
$0.00 | none |
| Summit Financial Group (SMMF) |
$0.00 | none |
| First Busey Corporation (BUSE) |
$30.32 | none |
| Healthpeak Properties (PEAK) |
$0.00 | none |
| Cathay General Bancorp (CATY) |
$62.25 | none |
| BancFirst Corporation (BANF) |
$108.29 | none |
| SBA Communications Corporation (SBAC) |
$178.59 | none |
| Transcontinental Realty Investors (TCI) |
$40.32 | none |
| The Bank of Nova Scotia (BNS) |
$94.07 | none |
| Evercore (EVR) |
$262.60 | none |
| Global Net Lease (GNL) |
$9.08 | none |
| Urstadt Biddle Properties (UBA) |
$0.00 | none |
| American National Bankshares (AMNB) |
$0.00 | none |
| Trustmark Corporation (TRMK) |
$47.45 | none |
| Annaly Capital Management (NLY ) |
$22.72 | 27.2% |
| Apple Hospitality REIT (APLE) |
$16.51 | none |
| Usio (USIO) |
$2.13 | none |
(SRCE ) |
$89.74 | none |
| Fairfax Financial Holdings Limited (FRFHF) |
$1668.65 | none |
| Bank OZK (OZK) |
$51.30 | none |
| Oconee Financial Corporation (OSBK) |
$52.25 | none |
| VelocityShares Daily 2x VIX Short-Term ETN (TVIX) |
$112.36 | none |
| Franklin Resources (BEN) |
$32.39 | 18.8% |
| Old National Bancorp (ONB) |
$26.64 | none |
| Ameris Bancorp (ABCB) |
$87.83 | none |
| Green Dot Corporation (GDOT) |
$13.11 | 34.0% |
| QCR Holdings (QCRH) |
$102.95 | none |
| ConnectOne Bancorp (CNOB) |
$32.94 | none |
| Lexington Realty Trust (LXP) |
$60.53 | none |
| HSBC Holdings plc (HSBC) |
$106.42 | none |
| Invesco Mortgage Capital (IVR) |
$7.41 | 56.9% |
| Summit Hotel Properties (INN) |
$6.88 | none |
| The PNC Financial Services Group (PNC) |
$248.49 | none |
| Noah Holdings Limited (NOAH) |
$8.45 | none |
| Capital City Bank Group (CCBG) |
$52.30 | none |
| Capital One Financial Corporation (COF) |
$208.71 | none |
| The Charles Schwab Corporation (SCHW) |
$104.47 | none |
| Credit Acceptance Corporation (CACC) |
$587.85 | none |
| Bank of Marin Bancorp (BMRC) |
$29.50 | none |
| KeyCorp (KEY) |
$22.18 | none |
| SLM Corporation (SLM) |
$25.69 | none |
| American Express Company (AXP) |
$331.50 | none |
| Citigroup (C) |
$127.13 | 19.1% |
| Cigna Corporation (CI) |
$296.47 | none |
| Equity Residential (EQR) |
$68.85 | none |
| The Goldman Sachs Group (GS) |
$980.75 | none |
| American Assets Trust (AAT) |
$23.72 | none |
| M&T Bank Corporation (MTB) |
$250.33 | none |
| The Progressive Corporation (PGR) |
$219.99 | none |
| Iron Mountain Incorporated (IRM) |
$120.75 | none |
| Agree Realty Corporation (ADC) |
$80.39 | none |
| Simon Property Group (SPG) |
$235.61 | none |
| Regions Financial Corporation (RF) |
$30.94 | none |
| Community Bank System (CBU) |
$66.10 | none |
| California First National Bancorp (CFNB) |
$33.95 | none |
| ARMOUR Residential REIT (ARR) |
$16.36 | none |
| The Hartford Financial Services Group (HIG) |
$145.68 | none |
| JPMorgan Chase & Co. (JPM) |
$344.71 | none |
| Discover Financial Services (DFS) |
$0.00 | none |
| Citizens (CIA) |
$3.48 | 69.6% |
| Prudential Financial (PRU) |
$122.63 | 57.3% |
| MetLife (MET) |
$97.02 | 13.3% |
| Prologis (PLD) |
$145.47 | none |
| Columbia Banking System (COLB) |
$29.95 | none |
| Cohen & Steers (CNS) |
$72.82 | none |
| Kimco Realty Corporation (KIM) |
$26.01 | none |
| Arlington Asset Investment Corp. (AI) |
$8.85 | none |
| Genworth Financial (GNW) |
$10.08 | 72.5% |
| UnitedHealth Group Incorporated (UNH) |
$420.57 | none |
| Wells Fargo & Company (WFC) |
$83.87 | none |
| Centene Corporation (CNC) |
$66.01 | none |
| Unum Group (UNM) |
$83.63 | none |
| Morgan Stanley (MS) |
$203.13 | none |
| T. Rowe Price Group (TROW) |
$118.87 | none |
| Riverview Bancorp (RVSB) |
$5.29 | none |
| Saul Centers (BFS) |
$34.32 | none |
| CME Group (CME) |
$265.44 | none |
| Cincinnati Financial Corporation (CINF) |
$181.33 | none |
| BB&T Corporation (BBT) |
$29.84 | 34.8% |
| Fifth Third Bancorp (FITB) |
$56.57 | none |
| Arrow Financial Corporation (AROW) |
$40.05 | none |
How to Invest in Financial Services Stocks
Sector-Specific Considerations
When evaluating Financial Services companies, consider these key factors:
- Sector fundamentals: Is this sector growing, mature, or declining? Growth prospects affect reasonable earnings forecasts.
- Economic sensitivity: How does this sector perform in different economic conditions? Understanding cyclicality helps you time purchases.
- Competitive dynamics: Are barriers to entry high or low? Strong moats protect profits and justify premium valuations.
- Regulatory environment: Does government policy significantly impact this sector? Regulatory changes can create risks or opportunities.
- Capital intensity: Does the business require heavy capital investment? Capital-light businesses often generate better returns.
✓ Sector Analysis Checklist
- Compare P/E ratios within the sector
- Look for strong free cash flow generation
- Assess debt levels relative to peers
- Evaluate dividend sustainability
- Check management track record
- Calculate margin of safety
Common Sector Pitfalls
- Chasing last year's hot sector
- Ignoring sector-wide headwinds
- Overpaying for market leaders
- Neglecting competitive threats
- Failing to diversify across sectors
- Not understanding the business model